THE CROATIAN PARLIAMENT

Transcription

1 THE CROATIAN PARLIAMENT 1133 Pursuant to Article 89 of the Constitution of the Republic of Croatia, I hereby issue the DECISION ON PROMULGATING THE MINING ACT I hereby promulgate the Mining Act passed by the Croatian Parliament at its session on 26 April Class: /13-01/91 Reg. No: / Zagreb, 2 May 2013 President of the Republic of Croatia Ivo Josipović, m.p. THE MINING ACT I. GENERAL PROVISIONS Scope of the Act Article 1 (1) The provisions of this Act refer to the exploration and exploitation of mineral raw materials found in the earth or its surface, in a river, lake or sea bed and underneath it, within interior sea waters or territorial sea of the Republic of Croatia, or within the continental shelf of the Republic of Croatia. (2) This Act regulates management of mineral raw materials and planning of mining economic activity, exploration and establishment of mineral raw material reserves, preparation and verification of mining projects, exploitation of mineral raw materials, granting concessions for exploitation, construction and use of mining facilities and plants, preparation of mining plans and mining measurements performing, rehabilitation of excavated areas, concession fee, award of damages, occupational health and safety measures, qualifications for performing specific mining operations, administrative and inspection supervision, penal provisions, and other issues.

2 (3) By way of derogation from the provision of paragraph 2 of this Article, regulations on waters shall apply to the exploration and exploitation of renewable deposits of construction sand and gravel in areas of importance for the water regime; regulations on the maritime domain along with the provisions of this Act shall apply to the exploitation of construction sand and gravel from the sea bed; as well as regulations on conduct and competence in marine and submarine areas over which the Republic of Croatia has sovereignty or sovereign rights and jurisdiction, and for exploration and exploitation of mineral raw materials from nonrenewable deposits in areas of importance for the water regime and in areas of sanitary protection of drinking water sources along with provisions of this Act shall apply regulations on waters. Application of regulations Article 2 (1) When pursuant to the provisions of this Act an approval is granted for exploration of mineral raw materials for the purpose of granting a concession for exploitation of mineral raw materials and concessions for exploitation of mineral raw materials, provisions of this Act shall apply, and for the issues not governed by this Act shall apply the provisions of the Concessions Act. (2) Issues of environmental and nature protection and issues concerning forestry which are not regulated by this Act and by the regulations passed on the basis thereof shall be governed by provisions of regulations governing those areas and by provisions of special regulations. (3) Issues of physical planning which are not regulated by this Act and by the regulations passed on the basis thereof shall be governed by provisions of regulations governing physical planning and by provisions of special regulations. (4) Issues of the right of access to information which are not regulated by this Act and by the regulations passed on the basis thereof shall be governed by provisions of regulations governing the right of access to information. (5) Procedural issues regulated by this Act and by the regulations passed on the basis thereof shall apply the provisions governing general administrative procedure. (6) Issues not regulated by this Act shall be accordingly governed by other regulations of the Republic of Croatia. Article 3 This Act comprises provisions in line with the following European Union legal acts: Directive 94/22/EC of the European Parliament and of the Council of 30 April 1994 on the conditions for granting and using authorizations for the prospection, exploration and production of hydrocarbons (OJ L 164, ) Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337 EEC, European Parliament and Council Directives 2006/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006 (OJ L 140, ). Mineral resources

3 Article 4 (1) Mineral resources are goods of interest to the Republic of Croatia, which enjoy its special protection and which are exploited under the conditions and in the manner laid down by this Act. (2) Mineral resources are owned by the Republic of Croatia. (3) For the purpose of this Act, mineral resources are all organic and inorganic mineral raw materials found in solid, liquid or gaseous state in original deposits, alluviums, tailing dumps, melting slags, or natural solutions (hereinafter: mineral raw materials). Mineral raw materials Article 5 For the purpose of this Act, mineral raw materials are: 1. energy mineral raw materials: 1.1 hydrocarbons (oil, natural gas, gas condensate and ozokerit), 1.2 fossil combustible substances: coal (peat, lignite, brown coal, anthracite), asphalt and oil rocks; radioactive ores; geothermal waters out of which accumulated heat may be used for energy purposes, except the geothermal waters used for healing, balneal and recreational and other purposes, which are covered by regulations on waters, 2. mineral raw materials for industrial processing: graphite, sulphur, barite, mica, gypsum, chalk, flint stone, flint sand, precious stones, bentonite, kaolin, ceramic and refractory clay, feldspar, talc, tuff, raw materials for the production of cement, carbonate mineral raw materials (lime stone and dolomite) for industrial processing, silicate mineral raw materials for industrial processing, all kinds of salts (sea salt) and saline waters, mineral waters from which may be obtained mineral raw materials, except mineral waters used for healing, balneal and recreational purposes or as water for human consumption and other purposes, which are covered by regulations on waters, brome, iodine, peloids, 3. mineral raw materials for production of construction materials: crushed stone (amphibolite, andesite, basalt, diabase, granite, dolomite and lime stone), construction sand and gravel from non-renewable deposits, construction sand and gravel from the sea bed, brick clay, 4. dimension stone, 5. mineral raw materials of metals. Mineral Raw Materials Management Strategy Article 6 (1) The Mineral Raw Materials Management Strategy shall be the basic document determining mineral raw materials management and planning of mining economic activities at the state level. (2) The Mineral Raw Materials Management Strategy shall contain foundations for the direction and alignment of economic, technical, scientific, educational, organisational and

4 other measures, and measures related to the implementation of international commitments with the purpose of managing mineral raw materials. (3) The Mineral Raw Materials Management Strategy shall determine the following: the state of mineral raw materials management, providing safe and reliable supply, rational and purposeful exploitation, sustainable use of mineral raw materials, providing environmental and nature protection in all areas of mining activity. (4) The Mineral Raw Materials Management Strategy shall be passed by the Croatian Parliament at the proposal of the Government of the Republic of Croatia. (5) The Government of the Republic of Croatia will at the latest within three years from the date of the entry into force of this Act submit a proposal of the Mineral Raw Materials Management Strategy to the Croatian Parliament for adoption. (6) Local self-government units and regional self-government units shall ensure the implementation of the Mineral Raw Materials Management Strategy through their development acts and shall ensure its implementation within three years from the day of the adoption of the Mineral Raw Materials Management Strategy by the Croatian Parliament. Mining-geology studies Article 7 (1) Regional self-government units shall prepare mining-geological studies for their areas, comprising the existing and potential deposits of mineral raw materials, which must be in line with the Mineral Raw Materials Management Strategy. (2) On the basis of the mining-geological studies referred to in paragraph 1 of this Article, local and regional self-government units shall, in their strategic physical planning acts, plan their needs and the manner of supply with mineral raw materials. (3) Local (regional) self-government units shall develop mining-geological studies within three years from the date of the adoption of the Mineral Raw Materials Management Strategy by the Croatian Parliament. (4) Mining-geological study referred to in paragraph 1 this Article, the local (regional) selfgovernments units shall submit to the ministry responsible for mining, the ministry responsible for physical planning and the ministry responsible for environmental and nature protection, within 30 days of its adoption. (5) The content and method of making mining-geological studies referred to in this Article shall be specified by ordinance of the Minister responsible for mining. Competent bodies Article 8 (1) For the mineral raw materials referred to in Article 5 points 1, 2, 4 and 5 of this Act, the body competent for mining affairs shall be the ministry responsible for mining.

5 (2) For the mineral raw materials referred to in Article 5 point 3 of this Act, the body competent for mining affairs shall be the state administration body within the regional selfgovernment unit. Mining activities Article 9 For the purpose of this Act, mining activities are all the activities performed in order to explore and exploit mineral raw materials, as well as activities concerning the rehabilitation of the area. Exploration of mineral raw materials Article 10 (1) For the purpose of this Act, exploration of mineral raw materials means: activities and explorations undertaken to determine the existence, location and form of mineral raw material deposits, their quantity and quality, and exploitation requirements. activities and explorations undertaken to determine the possibility of storage of hydrocarbons and permanent disposal of gases in geological structures, and exploitation requirements. (2) For the purpose of this Act, the following shall not be deemed exploration of mineral raw materials: geological field prospecting; geological, geochemical, geophysical, pedological and geo-mechanical explorations carried out in order to discover minerals or to prepare complex geological maps; soil investigation, scientific exploration, etc. Exploitation of mineral raw materials Article 11 (1) For the purpose of this Act, exploitation of mineral raw materials means excavation or extraction of mineral raw materials from their deposits and processing of mineral raw materials. (2) For the purpose of this Act, exploitation of hydrocarbons and of mineral and geothermal waters, when used for energy purposes, means also the transport of hydrocarbons and of mineral and geothermal waters by means of pipelines, when technologically connected with approved exploitation fields. (3) For the purpose of this Act, storage of hydrocarbons and permanent disposal of gases in geological structures is also deemed exploitation of mineral raw materials. (4) For the purpose of this Act, exploitation of dimension stone means extraction and shaping of the dimension stone into blocks on exploitation fields. (5) For the purpose of this Act, processing of mineral raw materials means selecting, sorting out, crushing, grinding, and drying of mineral substances, separation of useful minerals from accompanying tailings, separation of individual mineral components, and removal of dirt and water from hydrocarbons, when the mentioned operations are technologically connected with the exploitation of mineral raw materials.

6 (6) Exploitation of mineral raw materials shall be permitted only within a determined mineral raw materials exploitation field and within the limits of the verified mining project on the basis of which the concession was granted. Land rehabilitation Article 12 For the purpose of this Act, the land rehabilitation means mining activities to implement safety measures to areas excavated by mining activities to exclude the possibility of danger to people and property, as well as to nature and the environment, and for the achieving of purpose determined by certain physical planning documents if requirements are met. Mining facilities and plants Article 13 For the purpose of this Act, mining facilities and plants are all facilities, plants, equipment, tools, devices and fittings used for performing of the mining activities referred to in Article 9 of this Act. Mining economic entity Article 14 (1) A mining economic entity, for the purpose of this Act, may be a natural person or a legal person with the headquarters or a branch-office in the Republic of Croatia and registered with the body competent for exploration and exploitation of mineral raw materials. (2) By way of derogation from the provision of paragraph 1 of this Article, the mining economic entity may be a natural person or a legal person seated in any European Union Member State and registered for exploration and exploitation of mineral raw materials with the competent authority of the EU Member State. Participation of parties in administrative proceedings Article 15 In proceedings conducted in line with the provisions of this Act, owners of land plots in relation to whom such proceedings are conducted will be enabled to take part in the proceedings in the capacity of a party. Records and supervision Article 16 If facilities and plants within the meaning of this Act were erected while taking rehabilitation measures for the purpose of environmental and nature protection, records on those facilities and plants shall be kept by the body competent for mining affairs, whereas the supervision shall be carried out by the State Inspectorate. Setting deadlines Article 17

7 (1) The ministry responsible for mining shall, when setting deadlines laid down by the provisions of this Act for mineral raw materials referred to in Article 5 point 1 of this Act, adhere to the following criteria: 1. The deadlines referred to in Articles 34, 40 and 62 of this Act: within which public tender costs are to be settled shall be up to 30 days, within which a guarantee for costs of rehabilitation of an exploration area must be submitted to the ministry responsible for mining and within which the ministry responsible for mining must be notified of the appointment of the manager in charge of execution of mining activities shall be up to four months, within which execution of mining activities must commence shall be up to 12 months, within which the final report on the conducted exploration and rehabilitation of an exploration area must be submitted, in case that mineral raw material reserves or geological structures suitable for storage of hydrocarbons and permanent disposal of gases have not been determined by exploration activities, and within which the Study on mineral raw material reserves in an exploration area must be prepared and a decision on the determined quantity and quality of mineral raw material reserves obtained or a Study on geological structures suitable for storage of hydrocarbons and permanent disposal of gases prepared and a decision on the established structure, shape, size and volume of geological structures suitable for storage of hydrocarbons and permanent disposal of gases obtained shall be up to 48 months, within which a preliminary mining project for exploitation of mineral raw materials must be prepared and submitted to the ministry responsible for mining shall be up to 51 months, within which the location permit must be submitted to the ministry responsible for mining and within which the ministry responsible for mining must be asked to determine an exploitation field of mineral raw materials shall be up to 60 months, within which the general mining project must be prepared and submitted for verification to the ministry responsible for mining shall be up to 66 months, within which a concession contract for exploitation of mineral raw materials must be concluded with the ministry responsible for mining shall be up to 72 months. 2. The deadlines referred to in Article 49 of this Act: within which the body competent for mining affairs must be submitted an updated situation map of an exploitation field shall be up to three months, within which a preliminary mining project for exploitation of mineral raw materials must be prepared and submitted to the body competent for mining affairs shall be up to six months, within which execution of further exploration of mineral raw materials must commence shall be up to 12 months, within which the Study on mineral raw material reserves must be prepared and within which a decision on the determined quantity and quality of mineral raw material reserves must be obtained or a Study on geological structures suitable for storage of hydrocarbons and permanent disposal of gases prepared and a decision on the established structure, shape, size and volume of geological structures suitable for storage of hydrocarbons and permanent disposal of gases obtained shall be up to 18 months,

8 within which the location permit must be submitted to the body competent for mining affairs shall be up to 30 months, within which the general mining project must be prepared and submitted for verification to the ministry responsible for mining shall be up to 36 months, within which a concession contract for exploitation of mineral raw materials must be concluded with the body competent for mining affairs shall be up to 42 months. 3. The deadlines referred to in Articles 75 and 76 of this Act: within which the body competent for mining affairs must be submitted a guarantee for costs of rehabilitation of an exploitation field, within which the body competent for mining affairs must be notified of the appointment of the manager in charge of execution of mining activities and within which a concession contract for exploitation of mineral raw materials must be concluded shall be up to three months, within which the execution of mining activities must commence shall be up to six months. (2) The body competent for mining affairs shall, when setting deadlines laid down by the provisions of this Act for mineral raw materials referred to in Article 5 points 2, 3, 4 and 5 of this Act, adhere to the following criteria: 1. The deadlines referred to in Articles 34, 40 and 62 of this Act: within which public tender costs must be settled shall be up to 30 days, within which the body competent for mining affairs must be submitted a guarantee for costs of rehabilitation of an exploration area and within which the body competent for mining affairs must be notified of the appointment of the manager in charge of execution of mining activities shall be up to three months, within which the execution of mining activities must commence shall be up to nine months, within which the final report on the conducted exploration and rehabilitation of an exploration area must be submitted, in case that mineral raw material reserves have not been determined by exploration activities or within which the Study on mineral raw material reserves in an exploration area must be prepared and a decision on the determined quantity and quality of mineral raw material reserves obtained shall be up to 24 months, within which the preliminary mining project for exploitation of mineral raw materials must be prepared and submitted for verification to the ministry responsible for mining shall be up to 26 months, within which the location permit must be submitted to the body competent for mining affairs and within which the body competent for mining affairs must be asked to determine an exploitation field of mineral raw materials shall be up to 36 months, within which the general mining project must be prepared and submitted for verification to the ministry responsible for mining shall be up to 42 months, within which a concession contract for exploitation of mineral raw materials must be concluded with the body competent for mining affairs shall be up to 54 months. 2. The deadlines referred to in Article 67 of this Act:

9 within which the preliminary mining project for exploitation of mineral raw materials must be prepared and submitted for verification to the ministry responsible for mining shall be up to three months, within which the location permit must be submitted to the body competent for mining affairs shall be up to 15 months, within which the general mining project must be prepared and submitted for verification to the ministry resposnsible for mining shall be up to 21 months, within which a concession contract for exploitation of mineral raw materials must be concluded with the body competent for mining affairs shall be up to 27 months. 3. The deadlines referred to in Article 49 of this Act shall be laid down in paragraph 1 point 2 of this Article with the following deadline: within which an updated situation map of the exploitation field must be submitted, and for mineral raw materials referred to in Article 5 points 2, 3, 4 and 5 of this Act the same shall contain the identified plots of land (cadastral and land registry plots), shall be 30 days. 4. The deadlines referred to in Articles 75 and 76 of this Act shall be laid down in paragraph 1 point 3 of this Article. 5. The deadline referred to in Article 101 paragraph 2 of this Act shall be up to six months. 6. The deadlines referred to in Article 102 of this Act shall be laid down by paragraph 1 point 2 of this Article with the following deadline: within which an updated situational map of the exploitation field must be submitted, and for mineral raw materials referred to in Article 5 points 2, 3, 4 and 5 of this Act the same shall contain the identified plots of land (cadastral and land registry plot numbers), shall be 30 days, within which the preliminary mining project for exploitation of mineral raw materials must be prepared and submitted for verification to the ministry responsible for mining shall be up to 60 days, within which shall commence the performing of further exploration of mineral raw materials shall be up to nine months, within which a Study on mineral raw materials reserves shall be prepared for rehabilitation of an area and a decision on a determined quantity and quality of mineral raw material reserves obtained shall be up to 12 months, (3) The deadlines referred to in paragraphs 1 and 2 of this Article shall be counted as from enforceability of the administrative act setting deadlines. (4) In case of force majeure, deadlines set by administrative acts may be prolonged for the duration of force majeure by the body competent for mining affairs. (5) The following shall be deemed to be circumstances of force majeure: circumstances beyond reasonable control of the body competent for mining affairs and the mining economic entity which could not have been foreseen, avoided or prevented, in particular war (declared or undeclared), threat of war or existence of circumstances of war, natural disasters, or

10 decisions of state administration bodies, local and regional self-government units the consequence of which is inability to execute mining activities. (6) The following shall not be deemed circumstances of force majeure: lack of funds and/or any other financial instability of the mining economic entity, payment incapacity, and/or institute bankruptcy or liquidation proceedings against the mining economic entity. Legal protection Article 18 Legal protection throughout a single procedure of granting concession for exploitation shall be implemented in line with provisions of the Concessions Act. II GRANTING A CONCESSION FOR EXPLOITATION OF MINERAL RAW MATERIALS Single concession granting procedure for exploitation (scheme) Article 19 (1) For exploitation of mineral raw materials shall be required a concession for economic use of general or other goods pursuant to the Concessions Act, or a concession for the exploitation of mineral raw materials. (2) Granting a concession for exploitation shall be performed on the basis of one public tender in a single procedure consisting of the following phases: a) procedure with the aim to select the most advantageous bidder for exploration of mineral raw materials for the purpose of granting a concession for exploitation, b) procedure for the purpose of granting an approval for exploration, c) procedure for the purpose of determining an exploitation field, d) procedure for the purpose of granting a concession for exploitation. (3) A concession shall be granted at the request to the natural person or legal person in compliance and in the manner laid down by the Concessions Act that has been selected in the public tender procedure in acordance with the provisions of this Act as the most advantageous bidder, provided that after the completion of the exploration activities mineral raw material reserves are verified or structure, shape, size and volume of geological structures suitable for storage of hydrocarbons and permanent disposal of gases, the exploitation field is determined in compliance with the location permit and the natural or legal person in question meets also other requirements laid down in this Act. (4) By way of derogation from paragraph 3 of this Article, if in a certain area already exists a determined exploitation field, the beneficiary of which is the Republic of Croatia, a public tender for concession granting shall be announced. (5) If in case referred to in paragraph 4 of this Article it is necessary to conduct further exploration activities a single procedure for concession granting will be carried out as referred to in paragraph 2 of this Article except the procedure for determination of the exploitation field. In such a case there will be a public tender for selection of the most advantageous

11 bidder for further exploration of mineral raw materials in order to grant concessions for exploitation. (6) All the procedures comprised in an individual phase of the single concession granting procedure shall be conducted by a single body competent for mining affairs in compliance with the provisions of this Act. Obstacles to exercising the right Article 20 (1) The rights referred to in Article 19 of this Act shall not be exercised by: 1. natural or legal person that has outstanding liabilities on the basis of public fees and taxes, on the basis of unsettled fees for exploration and/or exploitation of mineral raw materials, on the basis of unsettled fees for the use of forests or forest land or agricultural land for the purpose of mineral raw materials exploitation, or on the basis on illegal exploration and/or exploitation of mineral raw materials, and unfulfilled obligations with regard to rehabilitation and nature and environment protection; 2. natural or legal person whose founder or co-founder is a natural or legal person that has outstanding liabilities referred to in point 1 of this paragraph. (2) Rights referred to in Article 19 of this Act shall be accomplished by the mining economic entity having no obstacles referred to in paragraph 1 of this Article, which is evidenced by: 1. the certificate of the Tax Administration stating that there are no debts, which proves that the mining economic entity does not have outstanding liabilities arising from public fees and taxes in the Republic of Croatia, 2. the State Inspectorate s certificate that natural person or legal person has not been caught in illegal exploration and/or exploitation of mineral raw materials. In case that the natural person or the legal person has illegally explored and/or exploited mineral raw materials it shall submit a valid proof that has paid damages to the Republic of Croatia. Under the valid proof is also implied a deal closed under condition that the person has fulfilled the outstanding liabilities from the agreement, 3. certificate of the ministry responsible for mining and the ministry in charge of finances which proves that the mining economic entity does not have any outstanding liabilities arising from fees for exploration and/or exploitation of mineral raw materials in the Republic of Croatia, 4. certificate of the body competent for state property management that the mining economic entity does not have any outstanding liabilities arising from the use of forests and/or forest land, or agricultural land for the purpose of exploitation of mineral raw materials in the Republic of Croatia. (3) Rights referred to in Article 19 of this Act may be obtained by the mining economic entity established in the EU Member States registered for exploration and exploitation of mineral raw materials with the competent authority of the EU Member State that meets the requirements referred to in paragraph 1 of this Article and that there are no obstacles for the exercise of rights are considered appropriate certificates referred to in paragraph 2 of this

12 Article issued by the competent bodies in the EU Member State in which the mining economic entity is seated. Change of person of the beneficiary and/or concessionaire Article 21 (1) If a natural person dies, its legal successor shall assume its legal position provided that it will perform the same activity and that meets other requirements laid down in this Act and in the Concessions Act. (2) In the event of termination of the legal person in its legal position shall enter its legal successor provided it performs the same activity and that it meets the other requirements laid down by this Act and the Concessions Act. The legal successor shall imply legal persons established by statutory changes in compliance with the act governing companies. (3) Based on the requirements of the legal heir or legal successor the competent authority will issue a separate decision to determine the legal successor to which the rights are transferred. With demand legal heir or legal successor shall submit certificate of inheritance or an excerpt from the relevant register and evidence referred to in Articles 14 and 20 of this Act. (4) In the case referred to in paragraph 3 of this Article when an agreement on concession is already concluded the grantor of concession and the legal successor will enter into a new concession agreement which shall not reduce the quality and disrupt the continuity of the execution of the concession agreement. (5) The decision referred to in paragraph 3 and the agreement referred to in paragraph 4 of this Article shall be entered in the register of exploitation areas or the register of exploitation fields kept by bodies competent for mining affairs and the register of concessions kept by the ministry responsible for finances. II a) PROCEDURE FOR SELECTING THE MOST ADVANTAGEOUS BIDDER FOR EXPLORATION OF MINERAL RAW MATERIALS FOR THE PURPOSE OF GRANTING A CONCESSION FOR EXPLOITATION Article 22 (1) The body competent for mining affairs in a single procedure for granting a concession shall announce a public tender to select the most advantageous bidder for exploration of mineral raw materials for the purpose of granting a concession for exploitation. (2) The body competent for mining affairs shall issue a decision on implementation of a public tender for selection of the most advantageous bidder for exploration of mineral raw materials for the purpose of granting a concession for exploitation: if it estimates there is a need to establish individual raw material reserves in a certain area and to establish their economic exploitability or the need to identify geological structures suitable for storage of hydrocarbons and permanent disposal of gases, on the basis of a proposal of a natural person or a legal person registered for the exploration and exploitation of mineral raw materials.

13 Special requirements, restrictions and approvals for announcement of a public tender Article 23 (1) A decision on implementation of a public tender for the selection of the most advantageous bidder for exploration of mineral raw materials for the purpose of granting a concession for exploitation may be issued for areas planned for execution of mining activities in physical planning documents. (2) By way of derogation from paragraph 1 of this Article, the decision to carry out a public tender for selection of the most advantageous bidder for the exploration of hydrocarbons, geothermal waters from which may be used accumulated heat for energy purposes or storage of hydrocarbons and permanent disposal of gases for granting concessions for the exploitation can be made for all areas in which there are no obstacles in the zoning document for conducting explorations of these mineral raw materials. (3) If the Republic of Croatia is the owner of the land plots within the borders of a proposed exploration area, the body competent for mining affairs shall, at least 30 days prior to the announcement of the public tender, notify the body in charge of state property management, or the ministry responsible for maritime affairs if maritime domain is concerned, of its intent to announce the public tender for the selection of the most advantageous bidder for exploration of mineral raw materials for the purpose of granting a concession for exploitation. (4) The body competent for mining affairs shall, at least 30 days prior to the announcement of the public tender, ask for special requirements, restrictions and approvals as regards the borders of the proposed exploration area from the state administration bodies, local and regional self-government units in whose territory the proposed exploration area is located, and legal persons vested with public authorities. (5) If the bodies and/or persons referred to in paragraphs 3 and 4 of this Article do not declare themselves within 30 days, it shall be deemed that those bodies and/or persons approve of the borders of the proposed exploration area and that they do not have special requirements or restrictions. (6) If the decision on the implementation of public bidding referred to in paragraph 2 of this Article is carried out for areas that are not planned for mining operations within the physical planning dpcuments, in case that after the exploration works and the adoption of the decision referred to in Article 55 of this Act can not be initiated a procedure to determine the exploitation field, the mining economic entity shall not be entitled to a reimbursement of costs determined and used to implement the exploration of mineral raw materials. Article 24 If a natural person or legal person submits a proposal for announcement of a public tender, the following must be indicated in or enclosed to the proposal: 1. name of the mineral raw material to be explored, 2. geographical location, size and name of the proposed exploration area, 3. programme of total exploration activities categorised by their type and scope, along with a detailed plan of activities which will be executed in the first year of the exploration, 4. total amount of funds required to perform the planned exploration activities and the manner of their provision,

14 5. excerpt from the court register or crafts register which shows that the person submitting the proposal is registered for exploration and exploitation of mineral raw materials, 6. geological or other documentation on the possibility of the existence of mineral raw materials or geological structures suitable for storage of hydrocarbons and permanent disposal of gases in the proposed exploration area, 7. proof referred to in Article 23 paragraph 1 of this Act, 8. for exploration of the mineral raw materials referred to in Article 5 points 2, 3, 4 and 5 of this Act, a map of the proposed exploration area shall be submitted with delineated land plots and indicated cadastral and land registry numbers, along with enclosed land registry excerpts for the land plots within the scope of the proposed exploration area and/or an official navigational chart of the marine part. Preparatory actions for the announcement of a public tender Article 25 (1) Preparatory actions for the announcement of a public tender for the selection of the most advantageous bidder for exploration of mineral raw materials for the purpose of granting a concession for exploitation shall be carried out by the body competent for mining affairs in line with the provisions of this Act, provisions of the Concessions Act and other regulations, depending on the type and location of the exploration area. (2) All activities preceding the commencement of announcement of the public tender referred to in paragraph 1 of this Article shall be deemed to be preparatory actions, and in particular the following ones: appointment of the Expert Commission, drawing up of tender documentation, defining the tender guarantee, defining the amount of the fee for access to and purchase of the tender documentation, defining special requirements and restrictions for exploration of mineral raw materials for the purpose of granting a concession for exploitation, defining borders of the exploration area, defining types and quantities of the exploration activities, defining deadlines, defining criteria for the selection of the most advantageous bidder for exploration of mineral raw materials for the purpose of granting a concession for exploitation. Public tender procedure Article 26 (1) The procedure of granting concessions in a single concession granting procedure for the exploitation shall begin on the day of sending for publication the notice of the intent to grant a concession, or the intent to select the most advantageous bidder for the exploration of mineral resources in order to grant a concession for the exploitation of the Electronic Public Procurement Classifieds of the Republic of Croatian and shall end with the enforceability of the decision on the selection of the most advantageous bidder for the exploration of mineral

15 raw materials in order to grant a concession for exploitation or enforceability of the decision to cancel the tender procedure. (2) The notice referred to in paragraph 1 of this Article may be published in other mass media and on the website of the body competent for mining affairs. (3) The notice referred to in paragraph 1 of this Article, after the publication in the Electronic Public Procurement Classifieds of the Republic of Croatia, the body competent for mining affairs shall deliver to the units of local and regional self-government in whose territory the proposed exploration area is located and they shall post it on their notice board for the duration of the public tender. (4) The ministry responsible for mining shall publish the notice referred to in paragraph 1 of this Article in the Official Journal of the European Union for the purpose of granting a concession for exploitation of hydrocarbons at least 90 days prior to the expiry of the deadline for the submission of tenders. Competence Article 27 (1) A decision on the selection of the most advantageous bidder for exploration of mineral raw materials for the purpose of granting a concession for exploitation shall be issued by the body competent for mining affairs at the proposal of the Expert Commission referred to in this Act. The same body shall also make other decisions in a single procedure referred to in Article 19 of this Act. (2) If the decision referred to in paragraph 1 of this Article refers to the area: sanitary protection zones for drinking water pumping sites and/or in an area important for water regime, a decision approving the exploration of mineral raw materials shall adopt the body competent for mining affairs with the consent of the ministry responsible for water management, mineral or geothermal water reservoirs (when the final intended use of geothermal and mineral water is for energy purposes), the decision of approval for exploration of mineral raw materials shall adopt the ministry responsible for mining with the prior consent of the ministry responsible for water management, maritime domain, the decision of approval for exploration of mineral raw materials shall adopt the body competent for mining affairs with prior approval of the ministry responsible for maritime affairs, part of the internal waters and affecting the waterway, the decision of approval for exploration of mineral raw materials shall adopt the body competent for mining affairs with the prior approval of the body competent for inland waterways. Principles of public tender procedures Article 28

16 When implementing a public tender procedure, the body competent for mining affairs shall, in relation to all natural persons and legal persons, respect the principle of free movement of goods, the principle of free establishment, the principle of freedom to provide services, the principle of efficiency, as well as all other fundamental principles contained in the Constitution of the Republic of Croatia and the Treaty on the Functioning of the European Union, such as the principle of competition policy, principle of equal treatment, principle of prohibition of discrimination, principle of mutual recognition, principle of proportionality and principle of transparency. Manner of submission and deadlines for submission of bids Article 29 Natural persons or legal persons shall submit their bids in accordance with and in a manner specified in the Concessions Act within a deadline specified in the notification referred to in Article 26 of this Act. Content of a bid Article 30 (1) A bid for the public tender shall contain the following: 1. name or title, OIB (PIN), address, telephone number, fax number and of the bidder, and the excerpt from the register of the competent body which shows the registration for the exploration and exploitation of mineral raw materials, 2. personal, professional, technical and financial requirements which the bidders, in accordance with the notice of the public tender, must fulfil, and the documents to prove their fulfilment, 3. evidence that there are no obstacles referred to in Article 20 of this Act, 4. information pursuant to which a selection can be made in accordance with the published criteria for the selection of the most advantageous bid. (2) In addition to what is laid down in paragraph 1 of this Article, the following shall be enclosed to the bid: 1. programme of total exploration activities categorised by type and scope, along with the cost estimate, drawn up in line with tender documentation, 2. detailed plan of activities which will be executed in the first year of exploration, 3. day by which the exploration is intended to be carried out, 4. total amount of funds required to perform the planned exploration activities and the manner of their provision, 5. day by which exploitation of mineral raw materials is intended to commence within the exploration area, 6. plan of rehabilitation of the exploration area, 7. tender guarantee, 8. proposed fee for a concession, 9. other evidence of importance when deciding about the most advantageous bidder, listed in the tender documentation,

17 10. for exploration of the mineral raw materials referred to in Article 5 points 2, 3, 4 and 5 of this Act, a map of the exploration area shall be enclosed with delineated land plots and indicated cadastral and land registry numbers in line with the programme of total exploration activities and/or an official navigational chart of the maritime part. Public opening of bids Article 31 The body competent for mining affairs shall perform the public opening of bids in accordance with and in the manner specified in the Concessions Act. Examination and evaluation of bids Article 32 Examination and evaluation of bids is carried out in accordance with and in the manner specified in the Concessions Act. Criteria for selection of the most advantageous bidder Article 33 Criteria for selection of the most advantageous bidder shall be the criteria laid down in the Concessions Act, the criterion of the economically most advantageous bid in terms of the body competent for minng affairs, related to the subject of the concession provided by this Act, as follows: 1. well-foundedness of the envisaged programme of total exploration activities categorised by type and scope, containing the cost estimate, and a detailed plan of activities which will be carried out in the first year of exploration, in line with special requirements and restrictions, 2. the proposed concession fee, 3. time limit by which exploration of mineral raw materials is intended to be carried out, 4. time limit and plan of rehabilitation of the exploration area, i.e. time limit by which exploitation of mineral raw materials is intended to commence, 5. the amount of the appropriate funds sufficient for the performing of mining activities according to the submitted programme of total exploration activities referred to in point 1 of this Article, 6. better professional training and greater financial capacity of the bidder to perform mining activities. Decision on the selection of the most advantageous bidder Article 34 (1) The decision on the selection of the most advantageous bidder shall be carried out in accordance with and in the way of making a decision on concession granting specified in the Concession Act.

18 (2) The decision on the selection of the most advantageous bidder for exploration of mineral raw materials for the purpose of granting a concession for exploitation shall contain, in addition to the data specified in the Concessions Act, the following: 1. name or title, OIB (PIN), of the selected most advantageous bidder that is approved exploration of mineral raw materials, 2. type of the mineral raw material, 3. name, boundaries, size and location of the exploration area, 4. deadline in which the final report on the conducted exploration and rehabilitation of the exploration area must be submitted, if mineral raw material reserves, or geological structure suitable for storage of hydrocarbons and permanent disposal of gases have not been determined by exploration activities. 5. deadline in which the study on mineral raw material reserves in the exploration area must be prepared and in which a decision on the determined quantity and quality of mineral raw material reserves must be obtained, or the Study on geological structures suitable for storage of hydrocarbons and permanent disposal of gases, 6. deadline in which the preliminary mining project for exploitation of mineral raw materials must be prepared and submitted to body competent for mining affairs, 7. deadline in which the location permit must be submitted to the body competent for mining affairs, 8. deadline in which the body competent for mining affairs must be asked to determine an exploitation field of mineral raw materials, 9. deadline in which the general mining project must be prepared and submitted for verification to the ministry responsible for mining, 10. deadline by which a concession contract for exploitation of mineral raw materials must be concluded with the body competent for mining affairs, 11. amount of rehabilitation costs of the exploration area and deadline in which the body competent for mining affairs must be submitted a guarantee for covering the rehabilitation costs of the exploration area, 12. deadline in which the body competent for mining affairs must be notified of the appointment of the manager in charge of mining activities execution, 13. amount and deadline in which costs of the public tender must be covered. Decision on cancellation of a public tender procedure Article 35 The decision on cancellation of public tender procedure shall be conducted in accordance with and in the way of making the decision on cancellation of the concession granting procedure specified in the Concessions Act. Abolition of the decision on the selection of the most advantageous bidder Article 36 A decision on the selection of the most advantageous bidder for exploration of mineral raw materials for the purpose of granting a concession for exploitation shall be abolished if the

19 selected most advantageous bidder shall not meet deadlines and obligations specified in the decision referred to in Article 34 of this Act. II b) PROCEDURE FOR THE PURPOSE OF GRANTING AN APPROVAL FOR EXPLORATION Exploration of mineral raw materials Article 37 (1) Passing the decision on the selection of the most advantageous bidder referred to in Article 34 of this Act shall be followed by the procedure of granting an approval for exploration of mineral raw materials. (2) For the exploration referred to in paragraph 1 of this Article it shall be necessary to obtain a decision approving exploration of mineral raw materials for the purpose of granting a concession for exploitation. The decision shall be passed on the basis of an enforceable decision on the selection of the most advantageous bidder referred to in Article 34 of this Act. (3) Exploration of mineral raw materials shall be carried out for the purpose of determining mineral raw material reserves for the exploitation of which a concession is granted. (4) Exploration of mineral raw materials shall only be allowed within the area specified in the decision referred to in paragraph 2 of this Article. Exploration area of mineral raw materials Article 38 For the purpose of this Act, the exploration area of mineral raw materials is a part of the area defined by joining the endpoint coordinates on land and/or the sea, which is designated in a decision issued by the body competent for mining affairs, after a public tender had been conducted, for mineral raw materials exploration for the purpose of granting a concession for exploitation (hereinafter referred to as: exploration area). Register of exploration areas Article 39 (1) Data on the exploration areas referred to in Article 38 of this Act shall be entered into the register of exploration areas kept by the body competent for mining affairs. (2) For exploration areas of the mineral raw materials referred to in Article 5 point 1 of this Act, data on all mining facilities located within the approved exploration area shall also be entered into the register of exploration areas kept by the ministry responsible for mining. Decision approving exploration of mineral raw materials Article 40 (1) On the basis of a decision on the selection of the most advantageous bidder referred to in Article 34 of this Act, the body competent for mining affairs shall pass a decision approving exploration of mineral raw materials. The decision shall not be passed before the decision becomes enforceable. (2) The selected bidder shall, prior to the issuance of the decision referred to in paragraph 1 of this Article, submit to the body competent for mining affairs the appointment of the manager